Binance Is Hedging Against Poloniex: How Should You Respond?
This is not financial advice
It's pretty easy to see that 2017 was a huge year for Binance. Pretty much overnight, Binance eclipsed the volume of every other exchange, and found its way upon a multi-billion dollar valuation. Oh...and let's add that it's the fastest everstartup to reach the status of unicorn.
Several factors played out in their favor. First, Bittrex, due to the volume of users, had to close its doors to new registrations. Unfortunately for them, this happened right around December, and continued through January. As we all know, there was a massive influx of new users in the crypto space in December, and having their registration locked, kept them from maintaining their title as the titan of the crypto exchange market.
While there are quite a few exchanges that have some volume, Poloniex is easily the next largest exchange, and it has historically had major credibility in the space. Just like Bittrex, Polo closed its doors to new registrations briefly, but beyond that, it was borderline unusable. It was not new user friendly, requires a lot in order to get a verified account (which allows users to deposit/withdraw and trade), and it was buggy.
When Binance appeared on the scene, it was smooth, the interface was aesthetically pleasing, and it had a well working mobile app, but most importantly, it had open registration--plus a sizeable ref link bonus. It was a no brainer. Most of the major coins were present and the volume/liquidity was there.
As it stands, Binance is the powerhouse, but after Poloniex's deal with Circle, it's clearly training it's way through an 80s montage, and it's going to come back with a vengence. As of today, Binance doubled it's referral bonus, and over the past several weeks, they have systematically listed the major Poloniex coins.
If you're looking for a play, I think holding some of the major Polo coins that aren't on Binance just yet is a way for a quick 2-10x on your investment. If you quickly look, of Poloniex's top 25 coins, Binance has only not listed Decred (DCR), DigiByte (DGB), and Primecoin (XPM). If I were a betting man, I'd say, having a bag of those three wouldn't be too bad of an idea...
I might shoot myself in the foot for being overly specific, but if I had to pick one coin, I personally put my money on Digibyte. Older coin, tons of volume, and it's on practically every exchange already so it's strange it hasn't happened already. Plus, DGB has the Tron effect, where it has massive public favorability, but unlike Tron, the coin hasn't seemed to perform all that well since it's legendary 100x pump.
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